Funding for education was one of the main topics of discussion during today’s Monitor Breakfast conversation between reporters and Education Secretary Miguel Cardona. He made no apologies for the recently announced student debt cancellation plan, essentially saying that what benefits some benefits all.
“The intention of this debt relief is to ensure that borrowers are not worse off after the pandemic than before,” Dr Cardona said. “But for this person who has repaid his loan, the fact that his neighbor is not in default helps the local economy.”
Why we wrote this
From the shortage of teachers to the cancellation of student debt, education in the United States is in the news. At a Monitor Breakfast, Education Secretary Miguel Cardona offered both criticism and solutions.
The Secretary has a long and extensive background in education, beginning teaching fourth grade in Meriden, Connecticut, then serving as Principal, Deputy Superintendent, and finally as State Commissioner of Education, before joining the Biden administration in March 2021.
Asked about his criticism of the college ranking system, Dr Cardona described a system “that rewards exclusionary practices”.
“There are millions of students with enormous potential – many of whom are the first in their families to go to college – who won’t even be looked at by some of these universities.”
“I am interested in the development and evolution of our higher education system to promote and reward inclusive practices,” he added.
Education Secretary Miguel Cardona has a message for Americans who have paid off their student loans and are not eligible for the federal government’s new debt cancellation plan.
When asked at a Monitor Breakfast for journalists on Wednesday whether the plan was fair, he replied, in essence, that what benefits some benefits all. He likens the program — which is just getting ready and may face legal challenges — to the Paycheck Protection Program, or PPP, the government loans that kept businesses afloat during the height of the pandemic.
“The intention of this debt relief is to ensure that borrowers are not worse off after the pandemic than before,” Dr Cardona said. “But for this person who has repaid his loan, the fact that his neighbor is not in default helps the local economy.”
Why we wrote this
From the shortage of teachers to the cancellation of student debt, education in the United States is in the news. At a Monitor Breakfast, Education Secretary Miguel Cardona offered both criticism and solutions.
“We are not complaining that businesses have not been forced to close and we have provided support to businesses through PPPs,” the education secretary added. “Now we are investing in Americans to make sure they get back on their feet and get on with their lives.”
Dr. Cardona expressed confidence in the legality of the student debt cancellation program. Last year, President Joe Biden and House Speaker Nancy Pelosi claimed congressional approval would be needed to fund student debt relief — with cost estimates for the federal government ranging from $300 to $300. 500 billion dollars. (Individuals earning less than $125,000 — and married couples earning less than $250,000 — per year are eligible for $10,000 debt forgiveness or $20,000 Pell Grant relief.)
Now, the Biden administration is basing its ability to circumvent Congress on a law passed in 2001 aimed at responding to war or other national emergency.
“Under the HEROES Act, I have the ability to waive certain provisions to ensure that students are not worse off after the pandemic than they were before,” says Dr. Cardona, making reference to the Student Aid Opportunities in Higher Education Act.
The education secretary said he “would welcome congressional action on this, because it’s an issue that affects all Americans.”
And what about the underlying structural problems of how higher education is funded in this country, a system that has become increasingly unaffordable for people of modest means?
Dr. Cardona mentions other efforts to make post-secondary education more affordable. One initiative involves income-contingent repayment, which would reduce student loan repayments from 10% of a person’s income to 5%.
The education secretary brought to the table his background as an educator in Meriden, Connecticut — first as a fourth-grade teacher, then as a principal and assistant superintendent, and finally as an education commissioner. state education, before joining the Biden administration in March 2021.
From his days as principal, Dr Cardona remembers a “really brilliant” boy in sixth grade whose father said his son would not go to college. “I just can’t afford it,” the man told her.
“The parent made a decision based on the fact that he knew he couldn’t afford college, you know – six years later his son wasn’t going to college,” says Dr. Cardona. “It happens too often in our country. So we are proud of debt relief.
The C-SPAN video of our breakfast with the Secretary of Education can be viewed here.
Here are more excerpts from breakfast, slightly edited for clarity:
What are other ways to fix the “broken system” of financing higher education?
Forgiveness of public service debt. If you choose a profession where you serve the public, in many cases you don’t because it pays like the private sector. You do it to improve the community. We are therefore ensuring that the law on the cancellation of public service loans is correctly applied.
When I became education secretary, there was a 98% rejection rate for public servants who paid off their loans for 10 years, served the public for 10 years and applied for them. Within a year of fixing the broken system, we have provided over $10 billion in loan forgiveness. More than 175,000 people have benefited from it.
We are fighting to double the Pell Grants so that more students who may have fewer resources growing up still have access to college.
We are going to work very closely with our higher education institutions to ensure that we elevate universities that provide a good return on investment for students. You know, the days of going to college and leaving with $150,000 in debt and then finding a job that pays $35,000 a year isn’t enough.
You recently called college ranking systems a “joke,” specifically targeting the obsession of the most selective colleges with rankings. What’s going on under your skin?
There are millions of students with enormous potential – many of whom are the first in their families to go to college – who won’t even be looked at by some of these universities.
I believe we have a system that rewards exclusionary practices. I am interested in the development and evolution of our higher education system to promote and reward inclusive practices. I don’t have to tell you that when students graduate, we still have disparities in outcomes. The NAEP [National Assessment of Educational Progress] – the nation’s report card – is a symptom of the fact that in our K-12 systems, running for places still serves as a determinant of success, unfortunately, almost as a predictor.
Currently, an infusion of federal funds is helping K-12 schools. But what happens when that funding ends?
Federal spending on education represents approximately 10% of total education funding. My challenge is for the remaining 90%: match the urgency of the president. If we go back to the funding that was there in March 2020, we shouldn’t expect any different results.
And how will a potential funding shortfall affect teacher pipeline programs, intended to address a shortage of K-12 teachers?
I’m visiting Tennessee next week as part of the back to school tour. I’m excited about this. Tennessee has a great apprenticeship program, a Grow Your Own program that’s integrated statewide and is very much like an apprenticeship for a trade.
They are looking for solutions, viable long-term solutions. States must invest in these programs.
My push is not just to make sure we use federal funds to create programs, but also to increase the urgency in state and local governments for continued funding on these issues that are so important.
